[年报]恒力石化(600346):恒力石化2024年年度报告（英文版）
|
时间：2025年05月19日 17:16:08 中财网 |
|
原标题:恒力石化:恒力石化2024年年度报告（英文版）
CompanyCode:600346 Company
Name:HengliPetrochemical
HengliPetrochemicalCo.,Ltd.
2024AnnualReportLettertoShareholders,PartnersandEmployees
Dear shareholders, investors, and friends who care about and support Hengli
Petrochemical:
Springsurges withvitality, andthefragranceoflocusttreesfillsthecity. On this
radiant April day, we present to you Hengli Petrochemical’s 2024 milestones as a
testamenttoourrelentlessdrive,extendingourdeepestgratitudeandsharingavisionfor
abrighterfuture.
Looking back, whether we are immersed in the grand narrative of long history or
focus on the minute details of individual destiny, it evokes a deep chill. Amidst the
undercurrentsofthechangingcentury,geopoliticalrivalriesgetlockedinstalemate.The
global economy grows ever more turbulent and unpredictable, further intensifying
uncertainties.Forenterprisesinparticular,withupstreamrawmaterialpricesremaining
persistently high and downstream market demand staying sluggish, Hengli Group has
forgedaheadagainstthedualpressuresofongoingglobaltradewarandfrequent"black
swan"events—wielding"innovation"asitsswordtobreakthroughbarriers,andshielding
itsgrowthwith"unwaveringcommitmenttocraftsmanship",anchoringthedirectionamid
turbulent sea and emerging as a frontrunner in the fierce competition. In 2024, the
company achieved operating revenue of 236.2 billion yuan, net profit attributable to
shareholdersof7.044billionyuan,andnetcashflowfromoperatingactivitiesof22.733
billionyuan.
Innovation breaks boundaries, redefining industry standards. "Innovation is the
lifebloodofenterprisevitality.Itbeginswithliberating minds,shiftingperspectives,and
breakingfreefromconventionalthinking—proactivelyembracingtransformation."Hengli
has engraved "creating standards and setting standards" into its genes. In 2024, Hengli
and Dalian University of Technology have jointly established the "Hengli-DUT Research
Institute" to seize the technological commanding heights with the deep integration ofproduction of ultra-fine fiber 27D/144f, with a filament of 9,000 meters weighing just
0.18g and a filament of a single spool (7.14kg) stretching from Earth to Moon. Hengli
delivers kilometer-scale value through millimeter-scale precision. Each breakthrough
embodiesitssteadfastcommitmentto"Refinement,Meticulousness,andPerfection".
Intelligent & green synergy forges sustainable competitiveness. Intelligence and
greening are the wings of a company's longevity. Kanghui New Materials has been
recognized as the "National Green Factory" and "Liaoning Province Manufacturing
Champion Enterprise" for its outstanding performance in sustainable and intelligent
development;JiangsuKanghuiwonthetitleof"JiangsuProvinceIntelligentManufacturing
Workshop" with its BOPET intelligent workshop, while Hengke Advanced Materials'
"IntelligentSpinningCraftsman"wasdesignatedasaprovinciallaborbenchmark,turning
intelligent manufacturing from an abstract concept into tangible productivity. Hengli
ChemicalFiberhasbeenhonoredasYangtzeRiverDeltaGreenDevelopmentLeader.We
optimizeeverydropofwaterandeverykilowatt-hourtoengineersustainablesolutions,
whichbringsour'Green-to-Core'commitmenttolife.
With a global vision, we are shaping a new industrial benchmark for China. At
Hengli, we recognize that only via boundary-breaking thinking and transformative
approaches can we secure enduring leadership. We have broken the "bottleneck"
problem through localized production of HDPE piping materials, regained dominance in
global textile markets through mass production of ultra-fine fiber, and set a
transformationmodelfortheindustrywithintelligentandgreenmanufacturingpractices.
TheseaccomplishmentsstandasHengli'sfirmresponsetonationalstrategicimperatives
andasolemn accountabilitytothetrustofshareholders.
Ourfoundingmissionstandsunshakableas bedrock,as weembark onaresolute
journey through all trials. During corporate development, weathering storms is the
enduring norm, navigating tempests defines our relentless posture, and defying squalls
embodiesourunwaveringmindset.ReflectingonHengliPetrochemical'sgrowthtrajectory,
we have been temperedthrough trials, fortified through adversities, innovated throughconvinced that only by aligning our purest aspirations with the nation's pulse, and
synchronizingourstrideswiththeepoch'srhythm,canweforgeacentennialfoundation,
craftingmagnificentchaptersworthyofbothhistoryandfuture.
Asthelastvestigesofwinterrecede,springrainsheraldrenewedvitality.Herein
Dalian, our strategic heartland, favorable currents converge under clear skies. With
propitiouswindsfillingoursails,thehourforrelentlessendeavorisuponus.Soundingthe
clarioncallofthe"Three-YearDecisiveVictoryCampaign",weforgeaheadwithironclad
resolve and innovative dynamism, infusing transformative industries with unyielding
momentumwhileshoulderingthemantleofdomesticindustrialascendancy.
Hengliiswillingtostandshoulder-to-shoulderwithshareholders,throughrelentless
operational discipline that sustains industrial excellence, by channeling strategic
accumulationintobreakthroughinnovations,advancingtowardafuturemarkedbymore
competitiveresilienceandsustainabledevelopment.
Chairman: 范红卫
April2025ImportantTips
I. The company's board of directors, board of supervisors, directors, supervisors, and senior
managersguaranteethatthecontentoftheAnnualreportistrue,accurate,andcomplete,and
that there are no false records, misleading statements, or major omissions, and assume
individualandjointlegalresponsibilities.
II. Alldirectorsofthecompanyattendedtheboardmeeting.
III. Zhonghui Certified Public Accountants (Special General Partnership) issued a standard
unqualified auditreportforthecompany.
IV. Fan Hongwei , the person in charge of the company, Liu Xuefen, the person in charge of
accountingwork, ZhengMinxia,thepersoninchargeoftheaccountingdepartment(accounting
supervisor), declare that they guarantee the authenticity, accuracy and completeness of the
financialreportintheannualreport.
V. Profitdistributionplanforthereportingperiodapprovedbytheboardofdirectorsorplanfor
capitalizationofpublicreservefunds
Thecompany'sprofitdistributionplanfor2024isasfollows:basedonthetotalsharecapitalon
theequitydistributionregistrationdate,acashdividendof0.45yuanpershare(includingtax)willbe
distributedtoallshareholders.
Thisprofitdistributionplanhasbeendeliberatedandapprovedatthetwenty-sixthmeetingofthe
ninthboardofdirectorsandtheseventeenthmeetingoftheninthboardofsupervisorsofthe
company,andneedstobesubmittedtothecompany's2024annualgeneralmeetingofshareholders
forconsideration.
VI. DisclaimerofForward-LookingStatements
√适用□不适用
Forward-lookingdescriptionssuchasfutureplansanddevelopmentstrategiesinvolvedinthis
reportdonotconstitutethecompany'sactualcommitmenttoinvestors.Investorsarerequestedto
maintainsufficientriskawarenessandunderstandthedifferencesbetweenplans,forecastsand
commitments.
VII. Whetherthereisanynon-operationaloccupationoffundsbycontrollingshareholdersandotherVIII. Whetherthereisanyexternalguaranteeprovidedinviolationoftheprescribeddecision-making
procedures
No
IX. Whether more than half of the directors cannot guarantee the authenticity, accuracy and
completenessoftheannualreportdisclosedbythecompany
No
X. SignificantRiskWarning
Duringthereportingperiod,thecompanyhadnoparticularlysignificantrisksthatwouldhavea
substantialimpactonproductionandoperation.
XI. Others
√适用□不适用
ThisannualreportispreparedinChineseandEnglishrespectively.Ifthereisanydiscrepancy
betweenChineseandEnglish,theChineseversionshallprevail.Content
Chapter1Definitions....................................................................................................................................7
Chapter2CompanyProfileandKeyFinancialIndicators..........................................................................11
Chapter3ManagementDiscussionandAnalysis......................................................................................19
Chapter4orporateGovernance................................................................................................................57
Chapter5EnvironmentalandSocialResponsibility..................................................................................78
Chapter6ImportantEvents.......................................................................................................................99
Chapter7ShareholdingChangesandShareholderInformation.............................................................108
Chapter8InformationofPreferredShares.............................................................................................119
Chapter9InformationofBonds...............................................................................................................120
Chapter10FinancialReports...................................................................................................................127
Chapter1 Definitions
Interpretation
Inthisreport,thetermslistedbelowaredefinedasfollows,unlessthecontextotherwiseimplies:DefinitionsofFrequently-UsedTerms
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
| Referto |
Chapter2 CompanyProfileandKeyFinancialIndicators
I. CompanyInformation
II. Contactsandcontactinformation
| SecretarytotheBoard |
| LiFeng |
| Floor31,BuildingB,VictoriaPlaza,No.52
GangxingRoad,RenminRoadStreet,
ZhongshanDistrict,DalianCity,Liaoning
Province |
| 0411-39865111 |
| 0411-39901222 |
| [email protected] |
III. Basicinformation
IV. Informationdisclosureandlocation
V. CompanyStockProfile
CompanyStockProfile
| Stockexchange | Stockname | Stockcode |
| ShanghaiStock
Exchange | Hengli
Petrochemical | 600346 |
VI. Otherrelevantinformation
| Name |
| Officeaddress |
| Nameofsigning
accountant |
VII. Keyaccountingdataandfinancialindicatorsinthepastthreeyears(I) Keyaccountingdata
Unit: ten-thousand-yuan Currency: RMB
| 2024 | 2023 | Increaseor
decrease
inthis
period
compared
withthe
same
periodlast
year(%) |
| 23,627,327.65 | 23,479,067.24 | 0.63 |
| 704,356.82 | 690,460.39 | 2.01 |
| 520,903.24 | 599,723.27 | -13.14 |
| 2,273,256.53 | 2,353,579.01 | -3.41 |
| Endof2024 | Endof2023 | Increaseor
decrease
attheend
ofthis
period
compared
withthe
endofthe
previous
year(%） |
| 6,339,917.72 | 5,999,240.10 | 5.68 |
| 27,308,286.99 | 26,059,902.09 | 4.79 |
(II) KeyFinancialIndicators
| 2024 | 2023 | Increaseor
decreaseinthis
periodcompared
withthesame
periodlastyear(%) |
| 1.00 | 0.98 | 2.04 |
| 1.00 | 0.98 | 2.04 |
| 0.74 | 0.85 | -12.94 |
| 11.48 | 12.24 | Adecreaseof0.76
percentagepoints |
| 8.49 | 10.63 | Adecreaseof2.14
percentagepoints |
Noteofthekeyaccountingdataandfinancialindicatorsofthecompanyinthepriorthreeyearsatthe
endofthereportingperiod
□适用√不适用
VIII. Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
(I) Differencesbetweennetprofitandnetassetsattributabletoshareholdersoflistedcompanyin
financial reports disclosed in accordance with International Accounting Standards and Chinese
accountingstandards
□适用√不适用
(II) DifferencesbetweenNetprofitandnetassetsattributabletoshareholdersoflistedcompanyin
financial reports disclosed in accordance with Overseas Accounting Standards and Chinese
Accountingstandards
□适用 √不适用
(III) Noteondifferencesinaccountingstandardsbetweendomesticandoverseas:
□适用 √不适用
| FirstQuarter | Second | ThirdQuarter |
| (January-March) | Quarter
(April-June) | (July-September) |
| 5,839,049.81 | 5,414,804.33 | 6,522,515.16 |
| 213,936.87 | 187,834.94 | 108,690.25 |
| 181,886.72 | 172,309.31 | 108,466.01 |
| 787,674.21 | 465,550.25 | 758,475.02 |
Explanationofthedifferencebetweenquarterlydataanddisclosedperiodicreportdata□适用 √不适用
X. Non-recurringgainsandlossitemsandamount
√适用□不适用
Unit: yuan Currency: RMB
| Amountin2024 | Notes(if
applicable) | Amountin2023 |
| 1,912,150.11 | | -4,564,909.89 |
| 1,775,850,371.26 | | 638,569,056.98 |
| 279,690,101.01 | | 431,893,116.94 |
| | | |
| | | |
| | | |
| 270,908,669.80 | | -25,075,119.31 |
| 2,517,138.63 | | 7,339,987.53 |
| 496,342,519.52 | | 140,790,996.05 |
| 42.95 | | |
| 1,834,535,868.34 | | 907,371,136.20 |
If the company recognizes items not listed in the "Explanatory Announcement No. 1 on InformationDisclosure by Companies that Offer Securities to the Public - Non-recurring Gains or Losses" asnon-recurring gains or losses with significant amounts, and defines the non-recurring gains or losses
listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies that OfferSecuritiestothePublic-Non-recurringGainsorLosses"asrecurringgainsorlosses,thereasonsshouldbeexplained.
□适用√不适用
XI. Itemsmeasuredatfairvalue
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
| Beginning
balance | Closingbalance | Changesinthe
period |
| 13,126.55 | 10,582.56 | -2,543.99 |
| 8,102.24 | 7,732.43 | -369.81 |
| 4,865.22 | 24,523.04 | 19,657.82 |
| 3,789.00 | - | -3,789.00 |
| 417,004.76 | 662,866.38 | 245,861.62 |
| 19,032.43 | 8,809.22 | -10,223.21 |
| - | 41,569.50 | 41,569.50 |
| 465,920.20 | 756,083.13 | 290,162.93 |
XII. Others
□适用√不适用Chapter3 ManagementDiscussionandAnalysis
I. DiscussionandAnalysisofBusinessPerformance
(I) MacroeconomicOverview
In 2024, the international political landscape underwent profound transformations, with
escalatinggeopoliticalconflictsandarisingtrendofunilateralismandprotectionism.Globalindustrial
andsupplychainsfacedrestructuringpressures,andthepaceofworldwideeconomicrecoveryslowed
significantly.Againstthisbackdrop,China'seconomicdevelopmentencounteredincreasinglycomplex
and severe external challenges, including heightened volatility in international markets, shrinking
external demand, and domestic structural contradictions such as insufficient effective demand,
overcapacityincertainindustries,andgrowingoperationalpressuresofenterprises.
However,thesupportingconditionsandbasictrendsofmycountry'slong-termpositiveeconomic
development have not changed, and the characteristics of a stable economic foundation, many
advantages,andgreatpotentialare still. mycountry adherestothe generaltone of work of seeking
progress while maintaining stability, fully, accurately and comprehensively implements the new
development concept, takes supply-side structural reform as the main line, and implements more
preciseandeffectivemacroeconomiccontrolpolicies.
Nevertheless, the fundamental drivers and long-term positive trajectory of China's economy
remainedunchanged,withitssolidfoundation,multipleadvantages,andvastpotentialstillprominent.
Adheringtothegeneralprincipleofseekingprogresswhilemaintainingstability,Chinafully,accurately
and comprehensively implemented the new development philosophy, focusing on supply-side
structuralreformasthemaintaskandadoptingmoretargetedandeffectivemacroeconomicpolicies.
Through the continued advancement of the innovation-driven development strategy, the
acceleratedconstructionofamodernindustrialsystem, andthefullunleashingof domesticdemand
potential, a virtuous cycle of mutual reinforcement between consumption and investment has been
formed. Notably, under the strong impetus of the CPC Central Committee's comprehensive
incrementalpolicies,marketsentimentimprovedsignificantly,developmentmomentumstrengthened
steadily,andthe nationaleconomy achieved botheffective qualitative enhancementandreasonable
quantitativegrowth.
In2024,China'sGDPsurpassedthehistoricmilestoneof134.9trillionyuan,successfullymeeting
the5%growthtarget.Thishard-wonachievementinjectedmuch-neededcertaintyintotheuncertain
global economy, fully demonstrating the remarkable resilience and vitality of China's economy and
vividlyillustratingthesuperiorityofthesocialistsystemwithChinesecharacteristics.
(II) IndustryOverview
Back to the industry, as a vital pillar of the national economy, the petrochemical sector has
demonstratedremarkableresiliencewhilenavigatingnumerouschallengesamidacomplexandvolatile
economiclandscape.In2024,underthestrongleadershipoftheCPCCentralCommitteeandtheState
Council, the industry adhered to the principle of "seeking progress while maintaining stability",
balanced development and security, and achieved new breakthroughs while maintaining overall
economicstability.
According to the latest data from the National Bureau of Statistics, the petrochemical industry
generated operating revenue of 16.28 trillion yuan in 2024, representing a year-on-year increase of
2.1%; total profits reached 789.71 billion yuan, down 8.8% year-on-year; and total import-export
volumestoodat948.81billionUSdollars,adecreaseof2.4%year-on-year.
Affectedbyfactorssuchasintensifiedinternationalgeopoliticalconflicts,fluctuationsintheglobaltransformation and upgrading, accelerates technological innovation and green development, and
accumulatesnewmomentumforhigh-qualitydevelopment.
Theindustryfacedsignificantheadwindsfromintensifiedgeopoliticalconflicts,volatilityinglobal
energy markets, and insufficient demand for certain products, compounded by excessive capacity
growth, prominent structural contradictions, and intensified "involution-style" competition. These
factors exerted sustained downward pressure on petrochemical product prices throughout 2024,
substantiallyimpactingcorporateandindustry-wideprofitability,withnoticeabledeclinesinprofits.
Despitethesechallenges,theindustryhasbeenactivelypromotingtransformationandupgrading,
accelerating technological innovation and green development to accumulate new momentum for
high-qualitygrowth.
By sector analysis, the oil and gas segment demonstrated robust performance with operating
revenue of 1.49 trillion yuan (up 1.5% year-on-year) and profits of 336.08 billion yuan (up 12.4%
year-on-year), showcasing strong risk resilience. The chemical sector reported operating revenue of
9.76trillionyuan(up4.6%year-on-year),butsawprofitsdeclineby6.4%year-on-yearto454.44billion
yuanduetorisingcostsandweakdemand,indicatingcertainoperationalpressuresoftheindustry.
Moving forward, the petrochemical industry needs to further optimize its industrial structure,
enhance high-end, green and intelligent development, and strengthen core competitiveness to
navigatethecomplexandever-changingmarketenvironment.
(III) AnalysisoftheAromatic-PTA-PolyesterIndustrialChain
1. Cost factors: Stable-to-declining crude oil prices and continued coal price reductions
effectivelyloweredcompanycosts
Fromthecostside,crudeoilpriceshave,andcoalpriceshavefallensignificantly.In2024,crude
oilpriceswillfluctuatewidely,withahighfirstandalowlater.TheannualaveragepriceofBrentcrude
oilforthewholeyearisUS$80perbarrel,ayear-on-yeardecreaseof2.8%;theaveragepriceofWTI
crudeoilisUS$76perbarrel,ayear-on-yeardecreaseof2.3%.
Onthecostside,crudeoilpricesmoderatedwhilecoalpricesdeclinedsignificantly.In2024,crude
oilpricesfollowedahigh-then-lowtrajectorywithwidefluctuationsthroughouttheyear.Theannual
averagepriceofBrentcrudeoilstoodat$80perbarrel,reflectinga2.8%year-on-yeardecrease;while
theannualaveragepriceofWTIcrudeoilwasrecordedat$76perbarrel,markinga2.3%year-on-year
decline.
In 2024, China's total coal supply continued its growth trajectory, with imported coal volumes
registering a significant year-on-year increase. Throughout the year, the coal market remained in a
supply-demandsurplus,characterizedbypersistentlyhighinventorylevelsandfluctuatingdownward
pricetrends.Datasource:Wind
2.Demand-SideFactors:SteadyGrowthinTextileDemandBenefitstheAromatic-PTA-Polyester
IndustrialChain
China's textile and apparel industry showed steady recovery, with rapid growth in demand for
civilian-usefibers.
Fromtheproductionside,fromJanuarytoDecember2024,theindustrialaddedvalueofChina's
textileindustryabovedesignatedsizeincreasedby5.1%year-on-year,up5.7percentagepointsfrom
thesameperiodin2023,indicatingacceleratedproductiongrowth.
From the consumption side, supported by stabilizing household income, recovering consumer
confidence, and the gradual effects of national consumption stimulus policies, domestic textile and
apparel sales maintained stable growth. Retail sales of clothing, footwear, hats, and knitwear above
designatedsizeroseby0.3%year-on-yearin2024.
From the investment side, Textile enterprises steadily expanded investments in high-end,
intelligent, and green transformation. Fixed-asset investment in the textile sector grew by 15.6%
year-on-yearin2024.
From theenterprise side, profitability continued to improve, with revenue of textile enterprises
abovedesignatedsizeincreasingby3.6%year-on-yearandtotalprofitsrisingby3.4%year-on-yearin
2024.
Looking ahead to 2025, home textile demand is expected to recover further, supported by
stabilizingrealestatemarketsandstrongconsumptionstimuluspolicies.Datasource:Wind
3.ProductPricesShowComplexDivergenceTrends
The "Aromatic-PTA-Polyester Fiber" industrial chain benefited to varying degrees from steady
growthindownstreamtextiledemand.However,individualproductperformanceremainedinfluenced
bytheirrespectivesupply-demanddynamics,resultingincomplexdivergencetrends.
Fromtheperspectiveofprodctpricetrends,theoverallindustrialchainexhibiteda"highfirst,lowtighteningsupplyandcrudecostsupport.Downstreamproductspolyesterfilament(POY/FDY/DTY)saw
rapidmarginrecovery,supportedbyreboundingend-userdemandandPXcostdynamics.
However, in the second half of the year, weakening cost support from declining global crude
prices, coupled with sluggish domestic demand, led to noticeable corrections in PX and PTA prices.
Polyester filament prices entered a volatile downtrend, pressured by softening demand and falling
crudecosts.
Datasource:Wind
(IV) OverviewoftheOlefinChemicalIndustryChain
Polyolefin products are expected to experience marginal improvement and recovery driven by
policy stimulus. In 2024, polyolefin apparent consumption maintained growth momentum, but
end-userdemandshowedstructuraldivergence.
In traditional sectors, demand for basic-grade products remained weak in real estate and
infrastructure—traditional pillar industries undergoing structural adjustments—leading to downwardrelatively stable polyolefin demand, though intensified competition and product homogenization
highlightedtheneedforhigh-end,differentiatedupgrades.
Fromthepersepectiveofcosts,polyolefinindustryprofitabilityimprovedyear-on-year,benefiting
from declining coal and crude oil prices. With the gradual effects of "property market stabilization"
policies and the implementation of consumption stimulus measures (e.g., "home appliance
replacement programs"), end-user demand is expected to rebound marginally, supporting upstream
chemicalpriceandmarginrecovery.
(V) CorporateOperationsOverview
Inrecentyears,ourcompanyhasstrategicallyaligneditsinnovationchainwithnationalindustrial
transformation policies, while deploying industrial chains around this innovation framework, with a
dualfocuson"supplychainreinforcement"and"R&Dinnovation".
Building upon our industry-leading "integrated oil-coal-chemicals mega platform", we have
acceleratedthe development of high-end fine chemicalclusters through precision park construction,
significantly enhanced industrial support capabilities for premium chemical raw materials and
strengthenedthefoundationalroleofupstream"megachemicalplatform"operations.
Ourcompanyhasproactivelycapitalizedonemergingopportunitiesinnewconsumptiontrends,
newenergysectorsandintelligentmanufacturingconvergence.Breakthroughsinkeymaterialsector
have been made, where our focused development of strategic product portolios includes PBS/PBAT
biodegradable materials, functional polyester materials, high-performance resin materials, premium
fibermaterials,newenergymaterials,andetc.CenteredonourDalianChangxingIslandindustrialbase,
we are constructing an integrated fine chemical and new materials ecosystem encompassing R&D,
production,andapplication.
Through vertical supply chain integration and strengthened technological innovation, we are
evolving into a globally competitive platform-based leader across the entire chemical new materials
valuechain,drivingsustainablehigh-qualityindustryadvancement.
2024 marked a pivotal year for achieving the objectives of China's 14th Five-Year Plan and
advancing toward high-quality development. Amid complex and challenging domestic and external
economicconditions,underthestrategicguidanceoftheBoardofDirectors,thecompanyadheredto
theprincipleof"seekingprogresswhilemaintainingstability",consolidatedtraditionalstrengthswhile
cultivating new growth drivers, accelerated the development of new quality productive forces andDuringthereportingperiod,thecompany'skeyworkisasfollows:
1. We will implement cost reduction and efficiency improvement, strengthen the potential of
theentireindustrychain,andconstantlyconsolidatetheadvantageofcostmoat.
As a "new productivity" in the domestic refining and chemical industry, the core advantage of
private large-scale refining and chemical industry lies mainly in the cost leadership of super-large
refineryunitsandtheproductmanagementof"oilforoil,olefinforolefin,andaromaticforaromatic".
Building upon these achievements, the company has established itself as an industry benchmark by
pursuingoperationalexcellenceandcontinuouslyreinforcingitscorecompetitiveadvantagesthrough
a cost moat strategy. Key initiatives include sustained cost optimization through internal efficiency
improvements and expense reduction and accelerated endogenous growth via high-value-added
technicalupgradesandpremiumprojectdevelopment.Thesemeasureshaveservedascriticaldrivers
behind Hengli Petrochemical's steady expansion in both operational scale and profitability over the
pastyear.
As the earliest "private large-scale refining and chemical" enterprise in China to put into
production, the scale of super-large plants, the synergy of integrated layout, and the aggregation of
upstream and downstream production capacity have created a synergistic advantage, which is the
main support for Hengli Petrochemical's "cost moat". Hengli Petrochemical was the first in China to
implement the concept of "component refining and molecular refining", selecting international
advanced technical standards, adopting world-leading and maturely applied process packages, and
usingthebestprofessionalgreenenvironmentalprotectionsewagetreatmenttechnologyintheworld.
Theequipmentselectionrequirementsaresignificantlyhigherthanthelevelofrefineriesinthesame
period, and the energy and material consumption, green environmental protection, intrinsic safety,
andlong-termoperationoftheplantareeffectivelyguaranteed.
Duringthereportingperiod,thecompanymadefulluseofitsoperationaladvantagesof"quality,
cost,rapidresponse,andmaximizingprofits" aswellasits flexible,efficient,andflexiblemechanism
characteristics to actively adapt to market conditions and quickly respond to market changes. The
company strengthened resource planning, optimized production and sales coordination, and timely
combinedwithfluctuationsinrawmaterialpricesandchangesinmarketdemandtoflexiblyadjustraw
materials,equipment,andproduct structures,giving prioritytoincreasingproductionofhigh-benefit
products,achieving"oilwhenoilissuitable,olefinwhenolefinissuitable,aromaticwhenaromaticis
suitable,andchemicalwhenchemicalissuitable".Thecompanymadeeveryefforttoensureefficient
collaborative operation of major industrial parks in the refining, petrochemical, chemical, and new
materialindustries,maintainabalancebetweenproductionandsales,smoothoperation,andensure
thecompany'shigh-quality,endogenousgrowthwithbenefits.
Fromtheperspectiveofintegratedproductioncapacitylayout,thelistedcompanyhasaunique
"oil, coal, chemical" deep integration platform in the industry. For the first time in the industry, the
fourmajorproductioncapacityclustersof20milliontonsofrefining,5milliontonsofcoalchemical,
1.5milliontonsofethyleneand12milliontonsofPTAarearrangedinthesameindustrialpark.Various
large-scaleoil,coalandchemicalplantsarecoupledthroughpipelineintegrationintheparktoachieve
upstreamanddownstreamconnectivity,significantlyoptimizingtheredundanttransportation,storage
andcoolingprocesses,savingalotofintermediateoperatingcostsandlogisticstransportationcosts.At
thesametime,thecompanyhasbuiltthelargestdomesticcoal-to-hydrogenplantinthepark,which
cansupply250,000tonsofscarcepurehydrogenrawmaterialsatlowcosteveryyear.Ithasalsobuilt
ahigh-power self-contained power plant witha totalcapacity of 520MW, whichis leading inenergy
efficiency in the industry. It provides a large amount of cheap electricity and steam at all levels for
refineries. It has self-operated two 300,000-ton crude oil terminals, 6 million tons of self-contained
crudeoiltankfarms,andothervariouscompleterawmaterial,finishedproductterminals,tankfarms,judgment on the market trend of raw materials, and continuously improving its raw material
procurement capabilities through domestic and international resource integration, strategic and
opportunisticcombination,andothermeasures.Italsoreasonablycontrolsrawmaterialinventoryand
reduces financial costs. In terms of equipment management, it strengthens daily maintenance and
repairofequipment,implementsregularmonitoringandtesting,andconductssystematicanalysisand
evaluationtotimelyidentifyandeliminatepotentialrisks,ensuringthelong-termstableoperationof
productionequipment.
The company has unlocked facility potential through strategic maintenance turnarounds,
implementing technical upgrades for critical units. By adopting digital twin and other advanced
technologies, operational efficiency saw marked improvement, establishing a virtuous cycle of
"management optimization → technologicalinnovation → profitability enhancement." This approach
notonlyensureslong-termstableoperationsbutalsosustainsindustry-leadingcostcompetitiveness,
layingasolidfoundationforhigh-qualitydevelopment.
Incapitalmanagement,thecompanyhasdiversifiedfinancingchannels,optimizeddebtstructure
and achieved historically low financing costs. Notably, the successful issuance of 2024 Phase I & II
Short-TermFinancingBills(Sci-TechInnovationNotes)totaledRMB2billion,witharecord-lowcoupon
rateof2.15%–themostfavorabletermsinrecentyears.
Starting from the second half of 2024, the company has basically ended the peak period of
investmentconstructionandcapitalexpenditure,andthefocusofsubsequentoperationswillbemore
on"optimizingoperations,reducingliabilities,andstrengtheningdividends"underrefinedcostcontrol,
continuingtobuildavalue-added"growth+return"listedcompany.
2. New material production capacity will be gradually put into use to achieve "optimizing,
extendingandsupplementing"theindustrychain.
——Thecompany’s1.6milliontons/yearhigh-performanceresinandnewmaterialsprojectwas
fully completed and put into production. As an important carrier for implementing the company's
development strategy of "improving upstream and strengthening downstream" and accelerating the
upgrade to the "platform + new materials" development model, the products of the project mainly
include bisphenol A, polycarbonate, electronic grade DMC, propylene glycol, ethanolamine, ethylene
amine, polyoxymethylene, acetic acid and other chemicals, which are widely used in emerging
industriessuchasnewenergy,electronics,andautomobiles.Thecompletionandcommissioningofthe
project achieved efficient penetration and deep connection from feedstock supply to proprietary
processtechnologiestoendmarkets,reducingtheproportionofbulkchemicalsinthecompany,while
increasingtheoutputoffinechemicalsandnewmaterialproducts,whichempoweredthecompanyto
strengthen and extend its industrial chain into downstream higher-value-added sectors, driving the
industrytowardhigh-endspecializationandprecision-orienteddevelopment.
——HengliChemicalFiber's400,000-tonannualcapacityhigh-performancespecialtyindustrial
yarn intelligent production project has achieved full-line commissioning. With total industrial yarn
production capacity now reaching 800,000 tons/year, Hengli Chemical Fiber has become the world's
largest production base for high-performance industrial yarns, providing downstream industries with
more abundant and higher-quality raw materials, which significantly boosts the advancement of
domesticautomotive,chemical,andelectronicsindustries
The high-performance specialty industrial yarns exhibit exceptional properties including: high
strength & high modulus, abrasion resistance andcorrosion resistance, and hasbeen widely used in
different fileds, such as automative (tire cord fabrics), Industrial (coveyor belts), Chemical (filtration
materials),Marine(deep-seacables),AerospaceandElectronics(high-endelectroniccomponents).
——The Suzhou Fenhu Base has successfully commenced full-scale production across its 12
functionalfilmproductionlines,achievinganannualproductioncapacityof470,000tonsofhigh-end
functional polyester films. This significant expansion further enhances Kanghui New Materials'basefilms;whileinultra-thinapplications,thecompanyspecializesinTTR(ThermalTransferRibbon)
basefilms,particularlysub-4.5μmTTRfilmsandotherultra-thinfilmsbelow8μmthickness.
Concurrently, the Nantong Base is making steady progress with its additional 12 functional film
productionlinesandlithiumbatteryseparatorprojects,withphasedcommissioningscheduledtobegin
in 2025. The combined operational capabilities of both the Fenhu and Nantong bases will establish
KanghuiNewMaterialsasthegloballeaderinbothproductionscaleandtechnologicalsophistication
forfunctionalfilmmaterials.
3.Innovationdrivesdevelopment,andtechnologyempowersindustrialupgrading.
Focusoncoretechnologybreakthroughsandfillthetechnologicalgapsintheindustry.Adhering
toits"innovation-drivendevelopment"strategy,thecompanyhasleverageditswell-establishedR&D
platform built over years to pursue development paths of market differentiation, technological
advancement, and business integration. Through sustained efforts in cutting-edge technologies and
advanced products of differentiated functional materials, the company achieved significant
breakthroughs. In 2024, multiple technologies and products across the company's entire industrial
chain overcame "bottleneck" constraints, made up for the shortcomings of the industry and filled
criticalvoidsintheindustry.
Hengli Petrochemical Chemical's high-density polyethylene (HDPE) pipe-grade material 23050 has
obtained PE100 grade certification, marking its attainment of domestic first-class standards. Hengli
ChemicalFiberachievedmassproductionofultra-finefiber27D/144F,withasinglefilamentweightof
just 0.18g per 9,000 meters, reaching internationally leading standards in fineness indicators. The
overall technology of Hengke Advanced Materials' project on "Industrialization of New Disperse
DyeablePolyesterandItsFibersUnderNormalPressure"attainedinternationallyadvancedlevels,with
its 10,000-ton continuous polymerization technology for disperse dyeable polyester fibers under
normalpressurerankingasgloballyleading.
The developmentof innovation platforms hasyielded remarkable results. Hengli Chemical Fiber
wasapprovedforthe2024JiangsuProvincialIntellectualPropertyStrategyAdvancementPlan.Hengke
Advanced Materials has successively established provincial enterprise technology centers, provincial
engineering technology research centers, Jiangsu Provincial Postdoctoral Innovation Practice Bases,
Provincial-levelEnterpriseTechnologyCenter,Provincial-levelEngineeringTechnologyResearchCenter,
and Jiangsu Postdoctoral Innovation Practice Base, etc., and obtained official certification as
the"JiangsuFunctionalPolyesterFiberEngineeringResearchCenter"in2024.
During the reporting period, the company's R&D investment reached 1.703 billion yuan,
representing a substantial 24% year-on-year increase. As of December 31, 2024, the company's
intellectual property portfolio comprised a total of 1,676 authorized patents globally, with over 300
newpatentsgrantedin2024alone,demonstratingcontinuouslystrengtheninginnovationmomentum.
Deepen the upgrade of intelligent manufacturing to fuel lean production. The company has
thoroughly promoted its "Intelligent Transformation and Digitalization" strategy, establishing the
Henglink Industrial Internet Platform as the core of its digital ecosystem. This platform integrates
intelligentsystemsincludingNCC,MES,AWMS,AGV,andequipmentmanagement,etc.,enablingdata
sharingandinteractiontobreak downsilos.Itachievesend-to-enddigitalcontrolspanningfromraw
materialprocurementandproductionmanufacturingtosalesandservices,effectivelyimprovingquality
control,reducingproductioncosts,andenhancingoperationalefficiency.
During the reporting period, the company's intelligent manufacturing capabilities gained further
authoritativerecognition:JiangsuKanghuiNewMaterialsTechnologyCo.,Ltd.successfullyobtainedthe
highest-levelAAAcertificationfortheIntegrationofIndustrializationandInformatizationManagement
System.The BOPET intelligent workshop was selected for the "2024 Jiangsu Provincial Intelligent
ManufacturingWorkshop"list.KanghuiNantongNew MaterialTechnology Co.,Ltd.formallyreceived
the national AAA-level certification for the Integration of Industrialization and Informatization4. Strengthen Safety and Environmental Protection Foundations, Practicing Green and
Low-CarbonDevelopment.
Basedonhigh-standarddesignplanning,constructionandoperation,anddetailmanagement,the
company implements intrinsically safe operations and green, low-carbon operation practices. This
approach serves as the lifeline, profit line, and hallmark for promoting the stable, efficient, and
sustainabledevelopmentofthelistedcompany.
Strengthen Intrinsic Safety Defenses and Build a Long-Term Governance System. In strict
adherence to the "Safety First, Prevention Primary, and Comprehensive Governance" principle, the
company executes all safety-related work with rigorous attention to detail in asolid and meticulous
manner, continuously elevating its intrinsic safety standards. By further strengthening the
implementation of primary safety responsibility, a safety accountability framework that "covers all
aspects horizontally and penetrates all levels vertically" was established, ensuring full coverage of
safetyresponsibilitieswithoutblindspots.
Thecompanyrigorouslyimplementedthedualpreventivemechanismofriskclassificationcontrol
and hidden hazard investigation and treatment, strengthened safety risk assessment, intensified
on-site safety management inspections, and thoroughly conducted hidden hazard identification and
remediationworktoensurecomprehensiveriskmitigation.
Additionally, the company regularly organizes safety and environmental protection training,
emergency drills, and other activities to enhance employees' safety awareness and emergency
response capabilities across all levels, which further consolidated the foundation of safe production,
andensuredthatthecompany'ssafetyproductionsituationcontinuestobestableandpositive.
Embracing Green and Low-Carbon Principles and Lay a Solid the Foundation for High-Quality
Development. The company actively practices the philosophy of "green development, circular
development and low-carbon development across the entire industrial chain", keeping pace with
industrialtrendandtechnologicalinnovations.Throughaseriesoftargetedinitiatives,ithasachieved
energyconservationandsustainabledevelopmentthroughouttheentireproductionprocess.
On one hand, by implementing systematic optimization upgrades, production process
improvements, and refining management practices, the company fully leverages integrated
upstream-downstreamindustrialchainsynergiesincludingprocesslinkage,materialmutualsupply,and
energycoupling.Advancedtechnicalmeasuressuchasheatenergycascadeutilizationandwasteheat
recoveryhavebeenadoptedtoeffectivelyreduceresourceandenergyconsumptionwhileenhancing
energyefficiency.
Duringthereportingperiod,HengliPetrochemicalRefiningimplementedaseriesofenergy-savingOn the other hand, the company sustainably optimizes its energy consumption structure to
supporttheachievementofthe"DualCarbon"goals(carbonpeakandcarbonneutrality).
Hengli Chemical Fiber has actively implemented coal-to-gas conversion and biomass boiler
constructionprojects,successfullydisplacingoriginalcoalfuelsandreducingfossilenergyconsumption
byover80,000tonsofstandardcoalequivalent(tce).
Kanghui New Material has constructed the largest photovoltaic power generation project in
LiaoningProvince.In2024,thecumulativepowergenerationreachedover45millionkWh,equivalent
to5,586tonsofstandardcoal,reducingcarbondioxideemissionsbyapproximately15,363tons.
The Hengli (Nantong) Industrial Park has reached a total installed photovoltaic capacity of
106.5MW, generating over 100 million kWh of green electricity annually and reducing carbon
emissionsby60,000tons.Additionally,theindustrialparkhasbuilta40MWenergystorageprojectto
effectivelyabsorbandutilizegreenelectricity,alleviatepeakpowerdemandpressure,lowerelectricity
costs,andstronglypromotethecompany'ssustainabledevelopment,contributingsignificantlytothe
realizationofthe"DualCarbon"goals.
Hengli(Nantong)IndustrialPark
Hengli(Nantong)IndustrialPark
PhotovoltaicPowerGeneration
EnergyStorageProject
Perseveranceleadstoexcellence,whilediligenceperfectsthecraft.Duringthereportingperiod,
three enterprises within the Hengli (Dalian Changxing Island) Industrial Park were consecutively
awarded the national-level "Energy Efficiency Leader" title for the fourth year, with their water
efficiency performance also ranking among the top. Hengli Chemical Fiber was recognized as the
"Green Development Leading Enterprise in the Yangtze River Delta Ecological Green Integrated
DevelopmentDemonstrationZone".
Following Hengli Petrochemical (Dalian), Hengli Petrochemical Refining, Hengke Advanced
Materials,HengliChemicalFiber,andHengliPetrochemicalChemical,KanghuiNewMaterialhasnow
been designated as a national-level "Green Factory". With this latest recognition, a total of six
subsidiariesunderthecompanyhaveachievednational"GreenFactory"certification.Hengli(DalianChangxingIsland)IndustrialPark
In response to the future industrial development trends of "carbon neutrality", the company
remainssteadfastinitstransitiontowardgreenandlow-carbondevelopment.Bydeeplyfocusingon
high-endmanufacturingasitscorestrategy,itcontinuouslyadvancesorporateinnovation,intelligent
transformation, and green development. The company maintains sustained commitment to
environmental, social, and governance (ESG) responsibilities, striving to forge a high-quality green
sustainabledevelopmentpaththatachievesbothharmoniouscoexistencebetweenindustrialprogress
andecologicalprotection,andsynergisticadvancementofeconomicbenefitsandsocialvalue.
II. Industryoverviewduringthereportingperiod
Pleaserefertotherelevantcontentof“I.DiscussionandAnalysisofBusinessPerformance”inthis
sectionfordetails.
III. Businessoperationsofthecompanyduringthereportingperiod
The company's main business covers the production, research and development, and sales of
materials products in the fields of refining, aromatics, olefins, basic chemicals, fine chemicals, and
variousdownstreamapplicationareasfrom"onedropofoiltoeverything".Atthesametime,relying
on the upstream "oil, coal, and chemical" integrated large chemical platform, it deeply anchors the
rigid consumer market of "clothing, food, housing, transportation, and use" as well as the high-tech
barrierandhigh-value-addedhigh-growthnewmaterialtrack.Itcontinuouslystrengthensitsinternal
integration advantages, cost moats, and refined management and control, and continues to build a
value-growthlistedenterpriseof"platform+newmaterials".
Thecompanyhasestablishedarobustmidstreamandupstreambusinesssegment,anchoredby
processing capacities of 20 million tons of crude oil and 5 million tons of raw coal annually. This
infrastructure yields an array of high-value-added, domestically sought-after chemical products,
including:5.2milliontonsofPX,1.8milliontonsoffiber-gradeethyleneglycol,1.8milliontonsofpure
benzene, 850,000 tons of polypropylene, 720,000 tons of styrene, 400,000 tons of high-density
polyethylene (HDPE), 850,000 tons of acetic acid, 140,000 tons of butadiene, and 720,000 tons of
methanol. Additionally, the company produces limited quantities of diesel and aviation kerosene.
With16.6milliontons/yearofoperationalPTAcapacity–nowfullycommissioned–thecompanyhas
emerged as the industry’s most technologically advanced and cost-competitive PTA supplier. The
downstream chemical new material products are rich in variety and complete in specifications,
targetingthemid-to-high-endmarketdemand,coveringpolyesterandchemicalnewmaterialproducts
suchascivilianpolyesterfilament,industrialpolyesterfilament,BOPET,PBT,PBS/PBAT,etc.,whichare
appliedintextile,medicine,automotiveindustry,environmentalprotectionandnewenergy,electronic
andelectrical,photovoltaicindustry,opticalequipmentandotherlarge-scale,differentiatedandhigh
value-addedindustrialmanufacturingandcivilianconsumptionfields.
With the full production of world-class refining and ethylene key production capacity and the
continuous consolidation and expansion of the advantages of the entire industrial chain in the
upstreamofthecompany,thecompanyhasacceleratedthedevelopmentofa"bigchemical"platform
supportingandrawmaterialsupportingconditionsforthedownstreamhigh-endnewmaterialmarket,
whichislong-term,deep-goingandrefined.Basedoninternaltechnologyresearchanddevelopment
and external industrial cooperation, the company continues to extend the value chain of chemical
materials and accelerates its entry into the market demand for "domestic substitution" and "rigid
consumption"representedbyadvancedmanufacturing,newenergy,newconsumption,newmaterialsThe company is the industry leader in implementing the strategy of full industry chain
developmentforpolyesternewmaterialsinChina.Itactivelypromotesthecoordinatedandbalanced
developmentofvariousbusinesssegmentsandvigorouslyexpandshigh-endcapacityintheupstream
and downstream. The company is committed to building a world-class integrated platform for the
entire industry chain, from "crude oil-aromatics, olefins-PTA, ethylene glycol-polyester-civil filament,
industrial filament,films,plastics." The Hengli Integrated Refining andPetrochemicalProject with an
annual capacity of 20 million tons and the Ethylene Project with a capacity of 1.5 million tons have
beenfullyputintooperation,achievingstrategicbreakthroughsintherefining,aromatics,andolefins
segments.Thecompanyhasbecomethefirstenterpriseintheindustrytoachieveintegratedoperation
and development of the entire industry chain from "crude oil-aromatics, olefins-PTA, ethylene
glycol-polyester new materials." With the sequential construction and operation of newly built
capacities,suchasPTA,chemicalnewmaterials,PBS/PBATbiodegradablenewmaterials,thecompany
continuouslyupgradesandoptimizesitsindustrialmodel,consolidatesandexpandstheadvantagesof
eachlink'sproductioncapacity,promotesthequantitativechangeinbusinessscale,andthequalitative
change in business structure. It establishes a strategic leadership advantage in adapting to the
high-quality competitive situation of the industry's full industry chain collaboration, production
capacitystructurequality,equipmentscalecost,technologicalprocessaccumulation,projectstart-up
speed,andthedevelopmentoflistedplatforms.
2.ComprehensiveOperationalAdvantageofScale,Technology,andSupport
Thecompanycontinuouslyintroducesinternationally leadingproductionequipmentandmature
technology packages, digests, absorbs, and utilizes them, and continuously innovates and improves
technologyandprocesses.Ithasestablishedahigh-qualityandefficientproductioncapacitystructure
andsupportingpublicengineeringintheupstream,midstream,anddownstreamofthepolyesternew
materials industry chain, characterized by "large-scale equipment, large-scale production capacity,
integrated structure, advanced technology, green andenvironmental protection, andcomprehensive
supporting facilities." Whether it is individual equipment, total production capacity, or production
processes, the company is at the industry's leading processing scale and technological level. This
ensuresthecompany'sadvantagesinunitinvestmentcost,materialandenergy consumptionsaving,
unit processing cost, product delivery cycle, product quality, and diversification. Moreover, the
companyhasthemostcomprehensivesupportingcapabilitiesintheindustry,includingpowersupply,
energy, ports, terminals, tank farms, storage, and transportation. It stands out in terms of
comprehensivecostsavings,servicequalityperformance,andoperationalefficiencyimprovement.The
complementaryrelationshipsamongrefining,petrochemicals,andcoalchemicalsintheindustrialpark
form an efficient synergy of operations and costs. The refining business has the largest
coal-to-hydrogen unit in the country, producing low-cost coal chemicals such as pure hydrogen,
methanol, acetic acid, and synthesis gas. In addition, the advantages of raw material and product
storageandtransportationsystemsgreatlyenhancetheoperationalflexibilityandcomprehensivecost
advantagesofprojects.
3.MarketCompetitiveAdvantageDrivenbyHigh-endResearchandDevelopment
The company follows a development path that emphasizes market differentiation, high-end
technology, and large-scale facilities while integrating business operations. It has a long-term
accumulatedmarket-technologyinnovationmechanismandhasestablishedaninternationalR&Dteam
andahigh-levelscientificresearchplatform.Itstechnologicalresearchanddevelopmentstrengthand
innovationcapabilityinnewproductsareleadingintheindustry.Thecompanycanquicklyrespondto
thelatestmarketconsumptiondemandchangesandhasastablereserveofmid-to-high-endcustomer
resources. The four main operating entities of the company, Hengli Fibre, Deli Fibre, Hengke New
Materials, and Kanghui New Materials, are all national high-tech enterprises. Through fine
managementoftheproductionprocessandcontinuousimprovementoftechnologyandprocesses,theglobalenterprisecapableofproducing12-micrometersilicon-coatedstackedlithiumbatteryprotection
films online. The company has absolute technological advantages and process accumulation in
functionalfilmsandcivilpolyesterfilament,formingacompetitivemoatthatisdifficulttoreplicatein
theindustryintheshortterm.
4.EfficientManagementAdvantageofIntelligenceandLeanManufacturing
Thecompanystrivestopromotethedeepintegrationof"Internet,bigdata,artificialintelligence,
andthe real economy"anddevelop advancedmanufacturing capacity to regenerate internalgrowth
momentum. It regards "intelligent interconnection" as an important entry point for industrial
upgradingandtransformation.Bygraduallyimplementingmethodssuchas"machinereplacinghuman,
" "automatic equipment change, " "complete set replacement of single machine, " and "intelligence
replacing digitization, "the company transforms its development model from relying on"population
dividends" to "technology dividends." Through the integration and application of intelligent
manufacturing,theInternet,andtheInternetofThings,thecompanycontinuouslyimprovesthelevel
ofintelligent manufacturingthroughout the entire process. It seamlessly integrates key linkssuch as
control, research and development, manufacturing, business management, and finance through
self-developedproducttestingsystems,automaticbarcodesystems,intelligentwarehousingsystems,
and sales systems, and interfaces with ERP systems to achieve product traceability and full-process
control. This promotes the company's transformation from "manufacturing" to "intelligent
manufacturing"andfromsinglebusinessmanagementtohighlysynergisticoperationoftheindustrial
chain. The company continuously enhances refined management and cost control capabilities,
adhering to meticulous daily operation management and implementing cost optimization
imperceptiblythroughinternalpotentialtappingandcostreduction/efficiencyimprovementinitiatives.
In terms of sales model, the company maintains an integrated production-trade approach,
characterizedby"sales-frontloadedpositioning,sales-ledproduction,andproduction-drivensales".By
implementing market-oriented sales mechanisms and performance-based sales team incentives, this
interconnected production-sales mechanism maximizes sales profits while ensuring real-time
informationsynergyacrossproduction,distribution,anddemandsectors.Thisenablesthecompanyto
capture market opportunities, maintain low-to-zero inventory operations, and ensure rapid market
responsecapabilities.Through"high-qualityproductsandefficientservices",thecompanyhasbuiltan
impregnableandunassailablemoatforitsproduction-salessystem,continuouslyheighteningcustomer
trustandloyalty.Todate,thecompanyhasaccumulatedover20,000long-termdownstreamclients.
5.AccumulatedTalentManagementAdvantage
The company has formed a multidisciplinary and multi-professional scientific research team,
including disciplines such as refining, petrochemicals, polymer materials, chemical fiber engineering,
textileengineering,electricalengineering,etc.Itsscientificresearchanddevelopmentcapabilitiesare
aheadofdomesticpeers.Whileintroducingexternaltalents,thecompanyattachesgreatimportance
tothecultivationofinternaltalentsandprovidesagoodcareerdevelopmentpathforemployees.The
company has also established a sound internal training system, covering research and development,
production, sales, management, and other aspects, and has cultivated a large number of backbone
personnel.
V. Mainoperatinginformationduringthereportingperiod
As of the end of 2024, the company's total assets were 273.083 billion yuan, a year-on-year
increase of 4.79%, and the net assets attributable to shareholders of listed companies were 63.399
billionyuan,ayear-on-yearincreaseof5.68%.
In2024,thecompanyachievedarevenuefromoperationsofRMB236.273billion,ayear-on-year
increaseof0.63%;anetprofitattributabletoshareholdersoflistedcompanyof7.044billionyuan,a
